GBP/JPY is expected to continue its upside movement. The pair is staying above both 20-period and 50-period moving average, and is expected to continue its technical rebound. Meanwhile the 20-period moving average is holding above the 50-period one, and the relative strength index is above its neutrality area at 50, lacking downward momentum. The intraday bias remains positive. As long as 138.35 is not broken down, a further bounce is preferred with 140.00 and 140.60 as targets.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 140.00 and the second one at 140.60. In the alternative scenario, short positions are recommended with the first target at 137.80 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 137.30. The pivot point is at 138.35.
Resistance levels: 140.00, 140.60, and 141.35
Support levels: 137.80,137.30, and 136.45
The material has been provided by InstaForex Company - www.instaforex.com